Ripple vs SEC Case As of April 14, 2024: Closed-Door Meeting

The XRP community has been in anticipation since the closed-door meeting held on April 11, 2024, by the Securities and Exchange Commission (SEC).

Though the meeting’s agenda remains confidential as the SEC’s official announcement did not mention Ripple or XRP, speculation suggests the commission may address the ongoing legal battle with Ripple Labs. Prominent crypto enthusiast JackTheRippler brought this development to light via a post on X.

Read Also: SEC Highlights Lawsuit Key Date: What November 9 Meeting With Ripple Mean for XRP?

SEC Closed-Door Protocol

It’s important to understand that closed-door meetings are standard practice for the SEC. These meetings are reserved for high-level SEC officials, including commissioners, their direct staff, and other key personnel. Discussions within the meeting are not accessible to the public, though they might take place virtually or at the commission’s headquarters in Washington, D.C.

Last year, Times Tabloid reported a similar meeting held in November that did not lead directly to a resolution in the Ripple lawsuit.

Settlement Conference Background

Ripple and the SEC previously convened for a court-ordered settlement conference on March 29, 2024, presided by Magistrate Sarah Netburn. The outcome of this conference has not yet been officially announced. Ripple has expressed openness to a conditional settlement, but thus far, the SEC prefers to seek resolution through the courts.

Ripple Lawsuit: Where Things Stand

The SEC v. Ripple case has seen mixed results for the regulatory agency. Significant rulings have declared Ripple’s programmatic sales and other XRP distributions as not constituting investment contracts (a win for Ripple). However, the court did determine that Ripple contravened federal securities laws in its offerings and sales of XRP to institutional clients.

The case now rests in the remedies phase, where fierce legal debate seeks to establish the appropriate penalties for these violations. The SEC’s remedies brief, filed last month, calls for a penalty nearing $2 billion to be imposed on Ripple.

Following the remedies scheduling order, Ripple’s opposition brief is slated for April 22, 2024, with the SEC’s reply due May 6th— followed by the court’s final judgment.

Read Also: Ripple CLO Reports Another Loss For the SEC

Impact on the XRP Market

Investors are becoming increasingly hesitant to engage with the XRP, with key metrics like total trading volume down 39.41% and open interest declining 5.92%, according to CoinGlass. Reduced options volume also hints at decreased speculation on XRP’s future price action. This uncertainty stems from the ongoing legal struggle between Ripple and the SEC.

Market participants anticipate news regarding a settlement. The outcome of this legal battle will likely significantly impact the cryptocurrency’s value, driving investor sentiment and activity.

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